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Title: A Business Process Analysis of the Surface Navy's Depot Maintenance Program
Authors: Donald S. Northrup
Keywords: Contract Strategy
Depot Maintenance
Fixed-Price Fees
Ship Contracts
Issue Date: 30-Dec-2015
Publisher: Acquisition Research Program
Citation: Published--Unlimited Distribution
Series/Report no.: Fixed-price
Abstract: To maintain the Surface Fleet, the Navy spent approximately $7.2 billion in FY2015 and requested $7.8 billion for FY2016. In response to years of costs overruns and missed deadlines, the Navy wants to make better use of these funds by shifting from executing Multi-Ship Multi-Option Contracts with cost-plus fee types to Multi-Award contracts with fixed-price fees. The new contract choice will increase competition and shift risk to the contractor. This thesis conducts an in-depth analysis of the contract change process during execution of depot maintenance availabilities using five ships as case studies. It uses lean principles and lessons from buyer-supplier relationship studies to recommend improvements and to answer two questions. Is the Navys current construct prepared to execute a new contract strategy? Is this the best decision to reduce cost and meet schedule requirements? The thesis concludes that process improvement is required before shifting to a new contract strategy, and that improving the working relationship with the contractor is paramount to process improvement.
Description: Logistics Management / Graduate Student Research
Appears in Collections:NPS Graduate Student Theses & Reports

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